The December bonus for each calendar year is based on 45 worked weeks. The December bonus is a fixed amount and vacation is not calculated on top of the December bonus. The bonus is paid based on employment rate and working hours. The December bonus is to be settled upon termination of employment.
The December bonus for different sectors:
The December bonus for the general market according to the agreement between Efling and SA
The December bonus in 2023: ISK 103.000
Those who are employed during the first week of December or have been employed by an employer for 12 consecutive weeks during the last 12 months have a right to a bonus no later than on December 15th. A full year’s job is seen as 45 weeks or 1800 hours during the period of January 1st to November 3oth.
Examples of calculations:
Example 1: An employee starts a new job on September 1 and intends to work until the end of the year. The period from Sept. 1 to 31 Dec correspond to 17 weeks. His compensation rate is 37.8% (17 weeks / 45 weeks). His December bonus is therefore ISK 103,000 x 0.378 = ISK 38,911
Example 2: An employee has worked for 30 weeks at 70% of the job.
103,000/45 x 30 x 70% = ISK 48,067
Example 3: An employee has worked 800 hours irregularly for 30 weeks. If an employee has worked very irregularly, it is often better to calculate worked hours. 45 weeks of full-time work make 45*40=1,800 hours. 103,000/1,800 x 800 hours = ISK 45,778.
The December bonus for employees of Reykjavík city
December supplement in 2023: ISK 115,000
Those who are employed during the first week of November or have worked for 13 consecutive weeks during the year are to be paid a December bonus on December 1st of each year. A full bonus is paid out to those fully employed during the period of January 1st to October 31st. The accrual period is the first 10 months of the year.
Examples of calculations:
Example 1: An employee works from January 1 to October 1, 2023, which corresponds to full-time work for 39 weeks. Of this, he took summer leave for 4 weeks. He therefore receives 77.8% of full compensation (35 weeks / 45 weeks) or ISK. 115,000 x 0.778 = ISK 89,470.
Example 2: An employee has a 70% work ratio since March 1, or for 8 months out of the first 10 of the year. 115,000/10 x 8 x 70% = ISK 64,400
The December bonus for employees of the State and nursing homes
The December bonus in 2023: ISK 103,000
Those who are employed during the first week of November or have worked for 13 consecutive weeks during the year are to be paid a December bonus on December 1st of each year. A full bonus is paid out to those fully employed during the period of January 1st to October 31st. The accrual period is the first 10 months of the year.
Example of calculation:
The employee has a 70% work ratio since March 1, or for 8 months out of the first 10 of the year. 103,000/10 x 8 x 70% = ISK 57,680
The December bonus for employees of municipalities other than Reykjavík city
The December bonus in 2023: ISK 131,000
An employee with a 100% employment ratio is paid a December bonus on December 1st of each year. The payment shall be made proportionally to the employment rate and working hours in the last 12 months prior to the payment date. The accrual period is from December 1 of the previous year.
Example of calculation:
The employee has a 70% work ratio since March 1 or for 9 months.
131,000/12 x 9 x 70% = 68,775 ISK